Question:
I operate a scaffolding business that is tax-resident in Slovakia with primary operations in Sweden and Slovakia. My team and I focus solely on the construction and demolition of scaffolding. We’re looking to expand as subcontractors to the Netherlands for a limited period, not exceeding 12 months.
Our posted workers will be in the country for no more than 183 days and all possess valid A1 certificates. I have no plans to register a new company or open subsidiaries in the Netherlands, nor do I intend to pay taxes there.
Could you advise on the necessary steps for obtaining a KVR or similar tax number to facilitate invoicing while we are based in the Netherlands? Is it possible to carry out work and invoice clients without any such registration?
Please note that our scaffolding services are VAT-exempt across Europe, and our invoices will be without VAT.
Answer:
As I see it, you have quite a straightforward situation. Since you already have the A1 certificate for your workers and you will not exceed the 183-day limit, you’re in a good position from a social security and tax standpoint. You mentioned you don’t want to register a new company in the Netherlands, which simplifies matters.
1. KVK Number: Generally, for short-term projects, you would still need to register with the Dutch Chamber of Commerce (KVK) for a tax number, even if you don’t establish a subsidiary.
2. Invoicing: Once you have a tax identification number from the tax authorities, you can invoice your Dutch clients. You can also invoice as a foreign company, but this could create complications for your clients.
3. VAT: Since scaffolding is VAT-exempt across Europe, you should indicate this clearly on your invoices to avoid any confusion.
4. Taxes: As long as you adhere to the 183-day rule and your company does not establish a permanent establishment in the Netherlands, you won’t be subject to Dutch corporate tax.
5. Local Laws: Be aware of local regulations and compliance in the construction sector. You’ll need to adhere to Dutch safety standards even if you are not tax-resident there.
To summarize, you would typically need a KVK number for invoicing and to comply with local regulations. Taxes in the Netherlands won’t apply as per your current setup and conditions.
